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In the Media: CUs, JP Morgan Settlement, Tax Reform

WASHINGTON (11/26/13)--The Wall Street Journal, The Street and The Hill carried comments during the past week from the Credit Union National Association on topics ranging from tax reform, to the National Credit Union Administration's settlement of its lawsuit against JP Morgan Chase and Wall Street banks over mortgage-backed securities.

Meanwhile, other publications pointed out the good work and benefits of credit unions, according to CUNA's weekly InThe Media Report (Nov. 22). The report covers mentions of CUNA and credit unions in the media and is available to CUNA's member credit unions.

The Wall Street Journal (Nov. 19) noted that NCUA "usually isn't known as the John Wayne of Washington financial regulators" but "it has been unusually tough on Wall Street firms that sold mortgage-backed securities." The article includes a statement from CUNA President/CEO Bill Cheney, saying, "I think [the NCUA] absolutely should, on behalf of the credit unions, recover as much as possible," as well as from NCUA Chairman Debbie Matz who noted, "We have made it clear to the defendants that we are willing to stay with this to the end."

In The Street (Nov. 19), Cheney is featured as saying in a telephone interview that he was pleased that credit unions would see some restitution for shaky mortgage securities they bought from JPMorgan. "One could certainly argue that it could have been more," Cheney said. "Having said that, we are happy with the settlement," he added. The Street featured Cheney's comments above comments made by JP Morgan CEO Jamie Dimon.

In an article about the secrecy involved in keeping what is in the tax reform plans under wraps, The Hill (Nov. 19) included comments from CUNA Senior Vice President for Legislative Affairs Ryan Donovan , who noted rumors are just that.

In "It's banks that are spinning fairy tales, not credit unions," an opinion editorial published in Friday's Albuquerque Business First, Sylvia Lyon, president of the Credit Union Association of New Mexico, and Chris Fitzgerald, league chair and CEO of Rio Grande CU in Albuquerque, responded to a bank's op-ed and point out that banks and credit unions are not the same.

"Unlike banks, credit unions are not-for-profit cooperatives, owned by their members and managed by volunteer boards," said Lyon and Fitzgerald. "Most credit unions are based in and directly benefit the community they serve. They have no stockholders demanding market rate return on their investments. Earnings are passed along to member-owners," they continued.